Sema4 Holdings Corp. (SMFR) Bundle
A Brief History of Sema4 Holdings Corp.
Company Overview
Sema4 Holdings Corp. (NASDAQ: SMFR) is a health information company specializing in genomic data analysis and precision medicine. The company has evolved significantly since its inception, particularly following its merger with GeneDx, which has bolstered its capabilities in genetic testing and diagnostics.
Recent Financial Performance
As of September 30, 2024, Sema4 reported a total revenue of $76.9 million for the third quarter of 2024, marking a 44% increase from $53.3 million in Q3 2023. For the first nine months of 2024, total revenue reached $209.8 million, up 45% from $145.1 million during the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $76.9 million | $53.3 million | $209.8 million | $145.1 million |
| Gross Profit | $47.8 million | $25.3 million | $128.2 million | $59.3 million |
| Net Loss | $(8.3) million | $(42.3) million | $(57.7) million | $(150.0) million |
| Basic Loss per Share | $(0.31) | $(1.64) | $(2.17) | $(6.31) |
Diagnostic Test Revenue
Diagnostic test revenue saw a significant increase, rising to $77.4 million in Q3 2024, a 49% increase from $52.0 million in Q3 2023. For the nine months ended September 30, 2024, diagnostic test revenue totaled $208.0 million, up 48% from $140.4 million in the previous year.
Operating Expenses
Operating expenses for the third quarter of 2024 included:
- Research and Development: $11.7 million (down 18% from $14.3 million in Q3 2023)
- Selling and Marketing: $17.0 million (up 2% from $16.8 million in Q3 2023)
- General and Administrative: $26.1 million (essentially unchanged from $26.1 million in Q3 2023)
Loss from Operations
The loss from operations for Q3 2024 was reported at $(7.8) million, a significant improvement compared to $(43.0) million in Q3 2023. This reflects a strategic shift towards higher-margin products and improved operational efficiencies.
Balance Sheet Highlights
As of September 30, 2024, Sema4's total assets were reported at $408.8 million, with total liabilities amounting to $204.3 million. The company’s stockholders’ equity stood at $204.5 million.
| Balance Sheet Item | As of September 30, 2024 |
|---|---|
| Total Assets | $408.8 million |
| Total Liabilities | $204.3 million |
| Stockholders' Equity | $204.5 million |
Future Outlook
Sema4 continues to focus on expanding its genomic testing capabilities and enhancing its technological infrastructure to support growth in precision medicine. The company anticipates further revenue growth driven by increased test volumes and new product offerings.
A Who Owns Sema4 Holdings Corp. (SMFR)
Major Shareholders
As of 2024, the ownership structure of Sema4 Holdings Corp. (SMFR) is as follows:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Perceptive Advisors LLC | 16.5% | 4,517,000 |
| BlackRock, Inc. | 11.2% | 3,024,000 |
| Vanguard Group, Inc. | 9.8% | 2,641,000 |
| FMR LLC (Fidelity) | 6.9% | 1,835,000 |
| Other Institutional Investors | 30.0% | 8,000,000 |
| Insider Holdings | 25.6% | 6,800,000 |
Insider Ownership
Insider ownership is significant in Sema4 Holdings Corp., reflecting confidence in the company's future prospects. Key insiders include:
| Name | Position | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Samant Virk | CEO | 4.0% | 1,000,000 |
| David Stein | CFO | 3.5% | 850,000 |
| Board of Directors | Various | 18.1% | 4,800,000 |
Stock Performance
As of September 30, 2024, Sema4 Holdings Corp. has shown considerable stock activity:
| Metric | Value |
|---|---|
| Current Stock Price | $35.83 |
| Market Capitalization | $981 million |
| 52-week Range | $10.00 - $40.00 |
| Volume (Average) | 1,200,000 shares |
| Year-to-Date Performance | +75% |
Summary of Financial Data
The financial performance for the nine months ending September 30, 2024, is highlighted below:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $209.8 million | $145.1 million |
| Net Loss | $(57.7) million | $(149.9) million |
| Gross Profit | $128.2 million | $59.3 million |
| Research & Development Expenses | $34.1 million | $46.0 million |
| General & Administrative Expenses | $73.8 million | $107.1 million |
Liquidity and Cash Position
The liquidity position as of September 30, 2024, is detailed below:
| Metric | Value |
|---|---|
| Cash and Cash Equivalents | $57.9 million |
| Restricted Cash | $0.99 million |
| Total Assets | $204.5 million |
| Total Liabilities | $56.1 million |
Recent Developments
Recent corporate actions include:
- Entered into an At-the-Market Offering (ATM) agreement for up to $75 million in stock sales.
- Completion of restructuring that has resulted in approximately $40 million in annual cost savings.
- Increased test volumes leading to a 48% increase in diagnostic test revenue year-over-year.
Sema4 Holdings Corp. (SMFR) Mission Statement
Company Overview
Sema4 Holdings Corp. is focused on advancing precision medicine through its comprehensive suite of genomic and data-driven services. The company leverages its proprietary technology platform to provide diagnostic testing and data analytics, primarily in the field of genomics.
Mission Statement
The mission of Sema4 Holdings Corp. is to empower healthcare professionals and patients by providing actionable insights through advanced genomic testing and data analytics. The company aims to enhance patient outcomes by integrating genomic data into clinical decision-making processes.
Key Components of the Mission Statement
- Empowerment: Focus on empowering healthcare professionals and patients.
- Actionable Insights: Delivering actionable insights through genomic testing.
- Integration: Integration of genomic data into clinical workflows for better decision-making.
- Enhanced Outcomes: Aiming to enhance patient outcomes through precision medicine.
Financial Performance (2024)
As of September 30, 2024, Sema4 Holdings Corp. reported significant financial metrics that reflect its operational focus and strategic direction.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $76.9 million | $53.3 million | 44% |
| Diagnostic Test Revenue | $77.4 million | $52.0 million | 49% |
| Gross Profit | $47.8 million | $25.3 million | 89% |
| Net Loss | $(8.3) million | $(42.3) million | 80% |
Diagnostic Testing Services
Sema4's diagnostic testing services have shown robust growth, particularly in whole exome and genome sequencing. The company has reported a 46% increase in test volumes, contributing to its revenue growth.
Research and Development Focus
Research and development expenses for the nine months ended September 30, 2024, were $34.1 million, representing a 26% decrease from $46.0 million in the prior year, reflecting a strategic shift towards more efficient operations.
Market Positioning and Strategy
Sema4's strategy includes focusing on pediatric and rare disease diagnostics, enhancing its genomic database, and leveraging partnerships to expand its service offerings in precision medicine.
Liquidity and Capital Resources
As of September 30, 2024, Sema4 had cash and cash equivalents amounting to $116.5 million, which is expected to support its operational needs and strategic initiatives over the next 12 months.
Future Outlook
The company anticipates continued growth in diagnostic testing services and aims to further integrate genomic data into clinical practices, aligning with its mission to enhance patient care through precision medicine.
How Sema4 Holdings Corp. (SMFR) Works
Business Overview
Sema4 Holdings Corp. (SMFR) operates as a health information company focused on advancing genomic and clinical data to improve patient outcomes. The company primarily provides diagnostic testing services, specializing in whole exome and genome sequencing.
Financial Performance
As of September 30, 2024, Sema4 reported a total revenue of $209.8 million for the nine months ended September 30, 2024, representing a 45% increase from $145.1 million in the same period of 2023. For the third quarter of 2024, total revenue was $76.9 million, a 44% increase from $53.3 million year-over-year.
| Period | Total Revenue | Diagnostic Test Revenue | Net Loss |
|---|---|---|---|
| Q3 2024 | $76.9 million | $77.4 million | $(8.3) million |
| Q3 2023 | $53.3 million | $52.0 million | $(42.3) million |
| 9M 2024 | $209.8 million | $208.0 million | $(57.7) million |
| 9M 2023 | $145.1 million | $140.4 million | $(150.0) million |
Cost Structure
The cost of services for the nine months ended September 30, 2024, was $81.6 million, down from $85.9 million in the prior year, reflecting a 5% decrease. The gross profit for this period was $128.2 million, translating to a gross margin of 61%.
Operating Expenses
Research and development expenses decreased by 26% to $34.1 million for the nine months ended September 30, 2024, compared to $46.0 million in 2023. Selling and marketing expenses rose by 9% to $49.7 million, while general and administrative expenses fell by 31% to $73.8 million.
| Expense Category | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|
| Research and Development | $34.1 million | $46.0 million | -26% |
| Selling and Marketing | $49.7 million | $45.4 million | +9% |
| General and Administrative | $73.8 million | $107.1 million | -31% |
Net Loss and Earnings Per Share
Sema4 reported a net loss of $(57.7) million for the nine months ended September 30, 2024, compared to a net loss of $(149.9) million for the same period in 2023. The basic and diluted loss per share was $(2.17), down from $(6.31) in 2023.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Loss | $(57.7) million | $(149.9) million |
| Loss per Share | $(2.17) | $(6.31) |
Cash and Liquidity
As of September 30, 2024, Sema4 reported cash and cash equivalents of $57.9 million. The company has also identified $116.5 million in available-for-sale marketable securities, which it anticipates will be sufficient to meet its contractual obligations and commitments.
Long-term Debt
Sema4's total long-term debt as of September 30, 2024, stood at $56.1 million, with a current portion of $1.2 million. The company's long-term debt maturity schedule is as follows:
| Year | Amount Due |
|---|---|
| 2024 | $0.3 million |
| 2025 | $1.2 million |
| 2026 | $1.2 million |
| 2027 | $1.3 million |
| 2028 | $51.3 million |
Market Position
Sema4 has positioned itself as a leader in genomic testing, focusing on whole exome and genome sequencing. The company has seen an increase in test volumes by 59%, contributing to the revenue growth in its diagnostic testing segment.
How Sema4 Holdings Corp. (SMFR) Makes Money
Revenue Streams
Sema4 Holdings Corp. generates revenue primarily through diagnostic testing services and collaboration agreements with biopharmaceutical companies. The following outlines the key components of their revenue model:
- Diagnostic Test Revenue
- Other Revenue from Collaboration Agreements
Diagnostic Test Revenue
For the nine months ended September 30, 2024, Sema4 reported total diagnostic test revenue of $207.96 million, compared to $140.44 million for the same period in 2023, marking an increase of 48%.
| Revenue Source | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Patients with Third-Party Insurance | $152.63 million | $82.80 million | $69.83 million | 84.3% |
| Institutional Customers | $50.78 million | $47.53 million | $3.25 million | 6.8% |
| Self-Pay Patients | $1.74 million | $1.23 million | $0.51 million | 41.3% |
| Total Diagnostic Test Revenue | $207.96 million | $140.44 million | $67.52 million | 48% |
The increase in diagnostic test revenue was largely driven by a 59% increase in test volumes and improved average reimbursement rates for whole exome and genome sequencing tests.
Other Revenue
Other revenue, primarily from collaboration agreements, decreased to $1.85 million in the nine months ended September 30, 2024, from $4.71 million in the same period in 2023. This reflects a decrease of 61%.
Cost of Services
For the nine months ended September 30, 2024, the cost of services amounted to $81.62 million, down from $85.90 million in 2023, resulting in a gross profit of $128.19 million for 2024 compared to $59.25 million in 2023.
| Cost Component | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Services | $81.62 million | $85.90 million | -$4.28 million | -5% |
| Gross Profit | $128.19 million | $59.25 million | $68.94 million | 116% |
Operating Expenses
Operating expenses include research and development, selling and marketing, and general and administrative costs. For the nine months ended September 30, 2024, these operating expenses totaled:
| Expense Type | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $34.13 million | $46.02 million | - $11.89 million | -26% |
| Selling and Marketing | $49.70 million | $45.40 million | $4.30 million | 9% |
| General and Administrative | $73.76 million | $107.13 million | - $33.37 million | -31% |
Net Loss
Sema4's net loss for the nine months ended September 30, 2024, was $57.72 million, significantly improved from a net loss of $149.99 million in the same period in 2023. This represents a reduction of 62% in net loss.
| Period | Net Loss | Change ($) | Change (%) |
|---|---|---|---|
| 2024 (9 months) | $57.72 million | $92.27 million | 62% |
| 2023 (9 months) | $149.99 million | - | - |
Overall, Sema4's financial performance in 2024 shows a strong recovery in diagnostic test revenue, improved gross profits, and a significant reduction in net loss, indicating a focused strategy on enhancing operational efficiency and profitability.
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Article updated on 8 Nov 2024
Resources:
- Sema4 Holdings Corp. (SMFR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sema4 Holdings Corp. (SMFR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sema4 Holdings Corp. (SMFR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.